Are You a Responsible Dog Owner? This is a MUST Read

received the attached e-mail the other day. As a responsible dog owner in Massachusetts, I found this information to be very alarming. I urge all Massachusetts dog lovers to write to their local state representative or senator to let them know that this proposed legislation is harmful to owners who show, handle, breed and care for their dogs as they would their own children. Also, the message from the AKC about the need to control dangerous breeds has been distorted to include all breeds.

This is bad news for us all!

Read the message below:

“As a Massachusetts resident who has registered a dog with the American Kennel Club over the past five years, the AKC would like to notify you of Massachusetts House Bill 5092. Opposed by both the American Kennel Club and its Massachusetts federation, the Massachusetts Federation of Dog Clubs, HB 5092 is a conglomeration of many anti-dog, anti-responsible dog owner, and anti-responsible dog breeder proposals.

For specific information on HB 5092, please click here to view AKC’s post.

WHAT YOU CAN DO:

The AKC encourages all Massachusetts residents to contact their state representative and express their opposition to the draconian provisions of HB 5092. Furthermore, Massachusetts residents are encouraged to urge their representative to contact Representative Donato, Chairman of the House Steering, Policy, and Scheduling Committee, and respectfully request that he “send HB 5092 to study.”

For more information, contact AKC’s Government Relations Department at (919) 816-3720, or e-mail doglaw@akc.org.”

Comments (0) | Permalink | Government, Lifestyle, General, Education, CityBlog, Chamber of Commerce | Flag as offensive

Loading Form....

(No Ratings Yet)

 Loading ...

Don’t Overlook the Value of Bathroom Improvements!!!

Valuable information to share with buyers and sellers.

According to the National Association of Realtors’ (NAR) annual “Cost vs. Value Report,” the bathroom is one of the most important features potential buyers look for in a home. What’s more, NAR’s 2007 report shows that a bathroom remodel recouped 93.2 percent of the initial cost upon selling the home.

Will Smith, celebrity interior designer, suggests that homeowners pay close attention to the bathroom mirror, paint, hardware and lighting. Each can easily and inexpensively be updated to provide a current look for a bathroom.

Making over a bathroom on a budget can be easily accomplished — without sacrificing style. According to Smith, high-end looks for less include:

• Mirror: The mirror is the focal point in the bathroom and can make a real statement with the right frame. A frame around the mirror gives a bathroom a finished, updated look.
• Paint: A painted bathroom is a tried and true way to make a big impact with little cost. Create a spa-like setting with paints in beige and pale tones or use popular colors such as brown, aqua, olive and gold to make the bathroom stand out.
• Hardware: Match the lighting, fixtures, bath bars, knobs and switches to create a cohesive look. Brushed nickel, pewter, antique or oil rubbed bronze finishes are all good options.
• Lighting: Soft lighting makes more of a statement than harsh lighting, so select a fixture with shades or sconces. You can also contribute to the greatest focal point in the room by placing the fixture above or alongside the mirror.

Comments (0) | Permalink | Real Estate, Mortgage, Lifestyle, General, CityBlog, Education, Chamber of Commerce | Flag as offensive

Loading Form....

(No Ratings Yet)

 Loading ...

Where do Mortgage Rates Come From?

Where do mortgage rates come from? Not the 10 year nor 30 year Treasury as many think.

Why and how mortgage rates change in the marketplace is often misunderstood – even by the news media. They often report mortgage rates will go down when the Federal Reserve announces a rate cut when sometimes the opposite can happen.

How do Federal Reserve rate changes affect mortgages?

Fed rate changes don’t directly affect mortgage rates. Instead, they affect the inflation expectations of investors. The role of the Federal Reserve in our economy is to control inflation so we have long-term economic growth and prosperity. If the economy grows too fast, we get inflation. If the economy shrinks, we have recession. The Fed’s main tool in managing the economy is to change short-term interest rates. They can directly change the rate banks charge each other for loans and the rate the Fed charges banks. Banks eventually change the rates they charge customers for certain loan and savings products as it gets cheaper or more expensive for them to borrow money. Loans indexed to the Prime rate are usually the first to change. The Fed lowers rates to speed up the economy. Lower rates encourage more business and consumer spending as loans become cheaper and saving becomes less profitable. The Fed raises rates to slow the economy. Higher rates discourage spending as borrowing becomes more expensive and saving money becomes more profitable.

If investors think Fed rate changes will make the economy grow fast enough to cause inflation, the mortgage rates they demand will go up. If they think the Fed’s actions will reduce inflation, mortgage rates are likely to fall. There are times when mortgage rates will go the opposite direction of Fed rate changes based on the inflationary impact investors expect.

What do investors have to do with mortgages?

Did you know that individuals and businesses can invest in securities backed by people’s mortgages? Institutions that make mortgages frequently sell them to investors. The mortgage interest homeowners pay provides income to buyers of mortgage-backed securities. That buying and selling of mortgages gives lenders a ready source of money for making mortgage loans. As a result, far more people can get mortgages and buy homes than would otherwise occur.

How do mortgage investors influence mortgage rates?

Investors require a return on their money in exchange for the risk they are taking. That required rate of return directly impacts mortgage rates. Simply put, if the rate offered on a mortgage-backed security is below the return investors require, they won’t buy it at face value. To get face value, the institution selling the mortgage must raise their mortgage interest rates to a level that meets the required rate of return.

The rate is generally based on two kinds of risk – inflation expectations and risk the borrower won’t repay on time.

During this period of credit risk and increased property foreclosures, mortgage backed securities are deemed risky and therefore the selling institution has to pay a higher rate to attract investors. This helps foster higher mortgage rates at the consumer level.

How inflation expectations of mortgage investors affect rates?

Inflation occurs when prices for goods and services rise over time. As prices rise, the purchasing power of a dollar falls. Investors want to ensure that inflation won’t erase the value of the earnings on their investments. If they expect inflation to increase, they’ll want a higher rate. If they expect inflation to decrease, they’ll accept less. As mentioned before, Fed rate changes are a big factor in those expectations.

Comments (0) | Permalink | Lifestyle, Real Estate, Mortgage, Government, General, CityBlog, Education, Chamber of Commerce | Flag as offensive

Loading Form....

(1 votes, average: 4 out of 5)

 Loading ...

Bye Bye Newspaper Advertising for Real Estate

As further evidence of the shift to online advertising, the Los Angeles Times has announced it will no longer publish its weekly real estate section. Click here for the entire news story.

Is Boston next? As a Realtor®, I am often asked by Sellers and Agents alike, why I am reluctant to use the newspaper for marketing and listing of properties for sale. Besides the high cost and low return on the advertising dollar spent, over 80% of homes are sold because somebody saw the listing on the Internet.. What could be more convincing?

I understand that it used to be fun to sit down with a cup of coffee on a Sunday morning, circling open house ads, but that was literally, yesterday’s news. Today’s buyers are more motivated to simply drive around an area of town that they like to look for open house signs so that they can do some research on the Internet before they call their Buyer’s Agent (notice I did not say the Listing Agent, because listing agents represent the seller - not the buyer, so why would you call the listing agent to help you buy the property?)

With decreasing readership in the print editions of newspapers and magazines, proactive Realtors® are spending their advertising dollars more wisely. It sounds like the LA Times just helped agents in Southern California make the inevitable decision. Wow, two great things to come out of LA this week - first the demise of the real estate section in the paper, then the news that they took Manny out of Boston. Maybe those earthquakes are making people in Lala land think more rationally. Well, maybe not. They did take Manny - who now has his IQ printed on his jersey (99).

Comments (0) | Permalink | Real Estate, Mortgage, Lifestyle, General, CityBlog, Education, Chamber of Commerce | Flag as offensive

Loading Form....

(1 votes, average: 5 out of 5)

 Loading ...

FAQs about the HOPE For Homeowners Legislation

This is hot off the press news. President Bush has signed into law the HOPE for Homeowners Legislation on July 30, 2008.

When does the program start?

The legislation is effective upon enactment; the HOPE for Homeowners program goes into effect on October 1, 2008. The Oversight Board will write more detailed program rules.

What agency is administering it? Will people be calling state offices or federal? Or will people just contact their lenders directly?

The Federal Housing Administration (FHA) will administer the program. The process begins when a homeowner or servicer of an existing eligible loan contacts an FHA-approved lender. Homeowners can contact lenders or servicers directly or through counselors (for which the bill provides another $150 million). It is important to note that this is a voluntary program.

Do borrowers have to use their current lender, or can they switch to another?

Borrowers may use any FHA-approved lender, as long as their current lender or investors agree to take the write-down in value.

Is it just subprime loans that can be refinanced? When did the bad loan have to have been taken out for them to qualify?

Any owner-occupants who are unable to afford their mortgage payments are eligible for the program. No investors or investor properties will qualify. Homeowners must certify, under penalty of law, that they have not intentionally defaulted on their loan to qualify for the program and must have a mortgage debt-to-income ratio greater than 31 percent as of March 1, 2008. Lenders must document and verify borrowers’ income with the IRS for the new loan. Loans had to have been originated before January 1, 2008.

What percentage of the current market value of the house must the loan be less than?

The size of the new FHA-insured loan will be the lesser of the amount the borrower can afford to repay, as determined by the current affordability requirements of FHA, or 90 percent of the current value of the home. Loans must be 30-year, fixed rate loans.

How will the interest rate be determined for the new 30-year fixed-rate loan?

Interest rates will be determined by the market. Because loans are insured by FHA, rates are expected to be very competitive.

What are the fees involved, and when are they paid? There is an annual default insurance premium, isn’t there?

Borrowers pay an insurance premium of 1.5% of the principal, which will be included in the monthly payment. In addition, the current lender makes an upfront payment of 3% of the principal to FHA.

Can the owner re-sell the house right away? Is there a waiting period? How much of the proceeds does the owner give up if they sell, and who gets those?

Borrowers must share the newly-created equity and future appreciation equally with FHA. This obligation will continue until the borrower sells the home or refinances the FHA-insured mortgage. Moreover, the homeowner’s access to the newly created equity will be phased-in over 5 years. If borrowers sell or re-finance within a year, they will pay the FHA 100% of any profit they may realize.

How many borrowers will be able to take advantage of the program? Is it first-come, first-served for qualifying borrowers?

The program is authorized to insure up to $300 billion in mortgages and is expected to serve approximately 400,000 homeowners.

Can a borrower be declined if they also have a home-equity line of credit? Is there any help available to also pay those off?

Borrowers have to retire any debt on the home to qualify for the program.

When does the program end?

The program will sunset on September 30, 2011.

Comments (0) | Permalink | Lifestyle, Real Estate, Mortgage, Government, General, CityBlog, Education, Chamber of Commerce | Flag as offensive

Loading Form....

(1 votes, average: 5 out of 5)

 Loading ...